BlackRock• Объект бренды » Бренды на b » Blackrock Says Clients
Are Buying
Bitcoin to Hedge Against
US• Экономика » Финансы » Платежные средства » Доллар США Debt Crisis
BlackRock• Объект бренды » Бренды на b » Blackrock Says Clients Are Buying Bitcoin to Hedge Against US• Экономика » Финансы » Платежные средства » Доллар США Debt Crisis
Bitcoin is certainly “risky,” but it's not a “risk• Страхование » Риск asset,” the asset
manager claims.
By Andrew Throuvalas
Sep 18, 2024 Sep 18, 2024
3 min read
BlackRock• Объект бренды » Бренды на b » Blackrock, a Bitcoin ETF issuer, is the world's largest asset manager.
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Is Bitcoin a “risk• Страхование » Риск-on” or “risk• Страхование » Риск-off” asset? Analysts at the world’s largest
asset manager BlackRock• Объект бренды » Бренды на b » Blackrock say the leading digital currency qualifies as neither.
In a PowerPoint document shared Wednesday, BlackRock• Объект бренды » Бренды на b » Blackrock said its clients largely
view Bitcoin as insurance• Страхование against a possible U.S• Соединённые Штаты Америки (США). debt crisis, and that
Bitcoin has “little fundamental exposure” to the macro variables that affect
other asset classes. Some of its defining attributes, BlackRock• Объект бренды » Бренды на b » Blackrock analysts
noted, are Bitcoin’s limited supply supply, global nature, and ease of
transfer across borders.
“The growing concerns in the U.S• Соединённые Штаты Америки (США). and abroad over the state of U.S• Соединённые Штаты Америки (США). federal
deficits and debt has increased the appeal of potential alternative reserve
assets as a potential hedge against possible future events affecting the U.S• Соединённые Штаты Америки (США).
dollar,” BlackRock• Объект бренды » Бренды на b » Blackrock’s analysts wrote.
“In our experience with clients to date, this explains a substantial portion
of the recent broadening institutional interest in Bitcoin,” they added.
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BlackRock• Объект бренды » Бренды на b » Blackrock just put out a nine-page white paper that makes case for bitcoin ETF
as a "unique diversifier" that can hedge against fiscal, monetary and
geopolitical risks, also incl section called "Bitcoin's path to $1
trillion market cap" ð Read whole thing here:… pic.twitter.com/mRzDpw4aSP
— Eric Balchunas (@EricBalchunas) September 18, 2024
The United States• Соединённые Штаты Америки (США) is currently $35 trillion in debt, with an official annual
budget deficit of $2 trillion, according to US• Экономика » Финансы » Платежные средства » Доллар США Debt Clock . Both Republican
Senator Cynthia Lummis and ex-President• Соединённые Штаты Америки (США) » Политика США » Политики США » Президент США
• Соединённые Штаты Америки (США) » Государственное устройство США » Президент США
• Политика » Политика США » Политики США » Президент США
• Государство » Государственное устройство США » Президент США Donald Trump• Объект человек » Персоналии по алфавиту » Персоналии на Тр » Трамп, Дональд have recommended using
Bitcoin to help clear the national debt by establishing a strategic Bitcoin
stockpile of 1 million BTC.
The report’s authors described Bitcoin as a “non-sovereign monetary
alternative” that is largely detached from both “banking system crises,
sovereign debt crises, currency debasement,” and “geopolitical disruption.” In
the long run, they see Bitcoin’s adoption rising in proportion to concerns
over these crisis events.
The analysis falls in line with the years-long narrative of Bitcoin as an
“uncorrelated” safe haven asset. For years, Bitcoin proponents have argued
that in times of trouble, and as the U.S• Соединённые Штаты Америки (США). dollar weakens, investors will flock
to scarce assets such as Bitcoin. But in practice, Bitcoin hasn’t behaved this
way in recent years.
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Since at least 2020, and following the pandemic-induced market crash in March
of that year, Bitcoin has traded in near-lockstep with Wall Street , and tech
stocks in particular. With respect to “geopolitical disruption,” Bitcoin sold
off by 6% within 10 days of Russia’s invasion of Ukraine in 2022, but had
posted a net 15% gain by the 60-day mark.
BlackRock• Объект бренды » Бренды на b » Blackrock attributes these apparent contradictions to Bitcoin’s immaturity as
an asset, but also its “high saleability” during panic periods compared to
less liquid assets like real estate.
At the moment, BlackRock• Объект бренды » Бренды на b » Blackrock says Bitcoin is still a “risky” asset due to
regulatory changes and its status as an emerging technology. These risks,
however, are not shared with other investment classes, according to the asset
manager.
“Simple ‘risk• Страхование » Риск-on’ versus ‘risk• Страхование » Риск-off’ frameworks lack the nuance to be broadly
useful,” BlackRock• Объект бренды » Бренды на b » Blackrock analysts wrote.
Disclaimer
The views and opinions expressed by the author are for informational purposes
only and do not constitute financial, investment, or other advice.
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